Partial Exemption

Health Professionals

If you would like us to look at ways of making your business more tax efficient,

Please Contact Us

Companies in exempt sectors such as finance, health, insurance, and education can only reclaim VAT on purchases to the extent that those purchases are attributable to taxable (i.e. non-exempt) sales.

  • What if a purchase is used to make both exempt and taxable sales?
  • How much VAT can be reclaimed?

The simple answer is that you must follow a specific calculation to determine how much VAT you may recover.  Sometimes, this calculation will deliver a result which is unrepresentative of how & where your business or organisation consumes costs.  In such instances a bespoke Partial Exemption Special Method (PESM) might serve you better.

We have successfully negotiated advantageous special VAT recovery methods with HMRC for our clients on many occasions.

back to top